Tariffs Keep U.S. Producer Prices Steady Despite June Turbulence

U.S. producer prices remained flat in June despite a rise in the cost of goods due to tariffs, balancing with weakened service prices. The producer price index increased 2.3% over 12 months. Economists predict tariff-driven inflation, with the Federal Reserve likely maintaining interest rates.

U.S. producer prices saw no change in June, with rising goods costs due to tariffs offset by weak service sector prices. This follows an upward revision of a 0.3% rise in May, as reported by the Labor Department's Bureau of Labor Statistics.

Over the past year, the Producer Price Index (PPI) rose by 2.3%, decelerating from May's 2.7% increase. This comes amid rising consumer prices in goods affected by tariffs, indicating potential long-term inflation impacts as duties remain a key concern.

Economists suggest the impending tariffs announced for August could continue pressuring prices. The Federal Reserve is expected to maintain current interest rates, in alignment with discussions evidenced in the June meeting minutes, focusing on monitoring core PCE inflation metrics closely.

(With inputs from agencies.)